Restrictions on the Effects of Preference Variables in the Rotterdam Model

Mark G. Brown, Jonq-Ying Lee
2002 Journal of Agricultural and Applied Economics  
AbstractThis study examines imposing and testing restrictions on preference variables in the Rotterdam model through the impacts of these variables on marginal utilities. An empirical analysis of the impact of a female labor force participation variable in a Rotterdam demand system for fresh fruit illustrates the methodology. This variable was modeled through its impact on marginal utilities via "adjusted" prices, following theoretical work by Basmann and Barten, among others. Results show that
more » ... the female labor participation has negatively impacted the demands for citrus, while positively impacting the demands for other fresh fruit.
doi:10.1017/s107407080000211x fatcat:3hei6f6b4ffkxh5qexkqliuoje